AMD Drops $10 Billion on Taiwan Chip Packaging Deal
AMD has made a significant investment in Taiwan's semiconductor ecosystem, committing over $10 billion to advanced chip packaging technology. The company will partner with TSMC and local manufacturing partners to develop Elevated Fan-Out Bridge (EFB) 2.5D packaging technology, which will enable faster data transfer between chips while reducing energy consumption.
The investment is structured to secure production capacity from 2026 through 2029 and will support AMD's sixth-generation EPYC server CPUs and Helios rack-scale AI platform. The company has chosen EFB-based 2.5D packaging due to its ability to improve interconnect bandwidth, which is crucial for building AI infrastructure.
The investment is a calculated attempt by AMD to build capacity in a comparable but distinct packaging architecture, as the company seeks to compete with Nvidia's use of TSMC's CoWoS technology. CEO Lisa Su noted that the investment operates alongside AMD's use of TSMC's Arizona facilities, which are part of TSMC's US expansion program receiving support under the CHIPS Act framework.